It was another active week in the small-cap oil and gas sector.
88 Energy Ltd (LON:88E) (ASX:88E) this week declared its takeover bid for XCD Energy unconditional and said the offer won’t be increased.
Earlier this week, 88 Energy reported that it had received acceptances representing 37.58% of XCD’s shares and it now confirms it has passed 59.27%. The company also noted that XCD shareholders which accepted the offer before it became unconditional will receive accelerated payment, before June 26, whilst subsequent acceptances will be paid within seven days of their acceptance being processed.
It added that once it has received 90% or more, it intends to proceed with compulsory acquisition of outstanding minority shareholdings and options.
On Thursday, Block Energy Plc (LON:BLOE) chief executive Paul Haywood said the company remains “enthusiastically active on many fronts” as the firm updated on developments at the West Rustavi field in Georgia.
The group noted that key equipment is arriving at the West Rustavi field and a new contractor is being brought on board to help advance projects.
Block pointed out, however, that production remains shut-in due to the coronavirus pandemic although the Republic of Georgia is presently at the beginning of a phased approach to restart businesses following lockdown. Restrictive measures have been relaxed for Georgia’s citizens and a re-opening of borders to foreign travellers is due in July.
Union Jack Oil Plc (LON:UJO) revealed the highlights of a GaffneyCline authored Carbon Intensity Study on the West Newton project, onshore East Yorkshire.
The group said the study had positive conclusions including an AA rating for carbon intensity for its potential upstream crude oil production, confirming it is significantly lower than the UK average and also when compared to other onshore analogues.
According to the GaffneyCline report, West Newton could produce the equivalent of just 5 grams of CO2 per megajoule of energy created and that could be reduced further, to 3.5, with the application of gas-to-grid technologies.
Touchstone Exploration Inc (LON:TXP, CVE:TXP) completed the final phase of testing on the Cascadura well in Trinidad, with two intervals both flowing above 5,000 barrels oil equivalent per day (boepd). A 24-hour test, limited by the capacity of surface test equipment, saw the upper section flow at an average of 5,472 boepd while the lower flowed at 5,157 boepd.
Findings of flow and build-up testing suggested that the upper would have ‘absolute open flow (AOF) of 390mln cubic feet per day, while the same test suggested an AOF of 92mln cubic feet per day from the lower.
Touchstone pointed out that analysis of the AOF suggests that it is reasonable to design for an initial production rate between 7,750 to 9,700 boepd, comprising 40 to 50 mln cubic feet of gas and 1,100 to 1,400 of condensate.
US-focused Mosman Oil And Gas Ltd (LON:MSMN) saw shares strengthened on Friday as the company announced it has granted an extension to the buyer of its Welch asset in Texas.
The company previously entered into a contract with Eagle Natural Resources LLC for US$300,000 (A$460,000) to buy the Welch project in May, with a non-refundable deposit of US$30,000 paid.
In a statement, Mosman said that the purchaser had asked for a 14-day extension to complete the transaction and said it would increase the deposit amount to US$60,000.
Explorer Chariot Oil & Gas PLC (LON:CHAR) highlighted its continuing work to advance the Anchois gas field, offshore Morocco, to define the project and unlock debt financing.
Posting its full-year 2019 results, the company confirmed that completion of pre-FEED work for the gas field is the key strategic focus for the group through the remainder of 2020. It is working to progress concept testing, selection and definition, along with engineering modelling and design. Meanwhile, commercially, it is aiming to secure heads of terms agreement with potential offtake partners.
On Tuesday, stockbroker SP Angel highlighted Eco Atlantic Oil & Gas’s (LON:ECO) emergence as a successful explorer in frontier regions is not reflected at all in the current share price
SP Angel initiated coverage on the stock with a ‘strong buy’ rating and a 110p target price.
The junior’s two large discoveries at Orinduik, offshore Guyana, made in 2019 will be followed by two further wells planned for next year while drilling offshore Namibia is also due to accelerate this year. According to ‘house’ broker SP Angel, the discoveries on the Orinduik Block have been misunderstood by the market.
“Whilst analysis confirmed the Tertiary formation at Orinduik contains heavy, sour crude; the reservoir is high-quality, over-pressured and at a high wellhead temperature, all of which will help with the mobility of the oil,” its analysts said in a note to clients.
ADM Energy PLC (LON:ADME) had told investors that operations at the OML 113 licence in Nigeria have remained uninterrupted by the coronavirus (COVID-19) pandemic and that it has been able to cut production costs significantly.
The company noted that the Aje field, part of OML 113, continues to produce from the Aje-4 and Aje-5 wells on the Turonian reservoir. It noted that talks are continuing between the field’s partners over the next phase of activity, based around further development of the Turonian gas and liquid reserves.